Vat Removed
Calculator
Results
- Net price (before tax)
- 100
- Tax amount
- 20
Tax and payroll results
| Net price (before tax) | 100 |
| Tax amount | 20 |
formula-map diagram
- Net price (before tax)
- 100
- Tax amount
- 20
Pay and tax relationship
Formula
net = gross ÷ (1 + VAT rate ÷ 100)= 100
Note
This is generic arithmetic using the rates you entered, not tax advice. No statutory rate, bracket, threshold or exemption is built in. Your real liability depends on your jurisdiction, tax year and personal circumstances; confirm with an official source or a qualified professional.
More in Tax and payroll
See all →Frequently asked questions
How does this calculator remove VAT from a price?+
It takes a price that already includes VAT (the gross price) and divides it by (1 + the VAT rate) to determine what the original price excluding tax (the net price) was, then can show the VAT amount as the difference between the two.
Why can't I just subtract the VAT percentage directly from the gross price?+
Because the VAT percentage was originally applied to the net price, not the gross price, simply subtracting that percentage from the gross price would overcorrect and give an incorrect, too-low result. The math requires dividing by (1 + rate), not multiplying by (1 − rate).
When would I need to back out VAT from a price?+
This is common when a business needs to determine the true pre-tax revenue from sales for accounting purposes, when comparing prices across countries with different VAT rates, or when reconciling a receipt that only shows the final price paid.
Does the calculation change if multiple tax rates apply to the same item?+
Yes, if a product is subject to more than one type of tax or a combination of national and local VAT-like taxes, you'll need to know the combined effective rate, or back out each tax individually if they're calculated on different bases — this calculator assumes a single flat VAT rate.
Is the VAT amount removed here the same as what a business remits to the tax authority?+
Not necessarily — a VAT-registered business typically remits the difference between VAT collected on sales and VAT already paid on its own purchases (input VAT), so the amount calculated here is the VAT on this specific transaction, not necessarily the net amount owed to the tax authority.